Approximately 102 million Americans work in the service industry, according to the Pew Research Center, filling critical positions in restaurants, salons and transportation. In many cases, these jobs offer base pay at rates up to 71 percent lower than federal minimum wage, with the expectation that tips, which are highly unpredictable, will make up the difference.
However, service workers who rely on tips are at greater risk for depression, sleep problems and stress compared with employees who work in non-tipped positions, according to a study published today in the American Journal of Epidemiology. The analysis is based on data from a nationwide health study that followed thousands of participants from adolescence into adulthood.
“The higher prevalence of mental health problems may be linked to the precarious nature of service work, including lower and unpredictable wages, insufficient benefits, and a lack of control over work hours and assigned shifts,” said lead author Sarah Andrea, M.P.H., a Ph.D. candidate in epidemiology at the OHSU-PSU School of Public Health. “On average, tipped workers are nearly twice as likely to live in poverty relative to untipped workers.”